Get sound legal advice before you sign on that dotted line...

Before the recession took hold, it was a largely landlords market, with a steady supply of tenants keen to take leases.

Both sides were often prepared to take risks, which meant that necessary legal steps to protect both parties were not always followed correctly.

Pre-recession, leases ranged from well-drafted, bespoke documents or the standard Law Society lease through to agreements scribbled on the back of a cigarette packet – or worse still, no lease at all.

The pitfalls of failing to take out professionally drawn-up leases became all too apparent when the downturn came.

Even formal leases were sometimes not enough to give landlords protection if the rent was paid.

Rather than forfeit the lease and incur an additional rates liability, I've known landlords allow tenants in arrears to remain in their properties.

Unsure of their legal position, landlords have also been reluctant to forfeit leases for fear of incurring potential damages.

Tenants' failure to repair premises during and at the end of a lease, security issues and what to do with tenants' worthless property left in landlords' premises, have all compounded the situation.

As we emerge from recession and the fall-out of not putting legally binding leases in place is becoming abundantly clear, landlords and tenants are more cautious.

Our experience is that both parties are now more willing to seek professional legal advice and are more inclined to use bespoke leases.

In addition, modern post-recession leases should contain better protection for landlords against a defaulting tenant.

Relying on a pre-recession style lease is often not enough.

Landlords are asking for personal guarantees by tenants and want a legal commitment before handing over the keys.

For their part, tenants are negotiating more and are increasingly likely to want break clauses.

They are also coming to understand that it isn't just important to check what is in the lease; it's important to check what is not included.

With more tenants and landlords now coming to the market, it is essential we learn from past mistakes.

By taking sound legal advice from the outset, landlords can be more confident of a secure and regular rental income, having a well-maintained property handed back in good condition and, ultimately, a good return on their property investment.

Tenants, too, benefit from proper legal advice so they are aware of their financial and repairing commitments and to make sure the lease does not restrict the future development of their business.

By assessing the situation objectively and checking every legal document thoroughly, we can make sure landlords do not fall into the pre-recession traps of the old leases and that tenants do not sign up to commitments they are unable to meet.